TORONTO, ONTARIO--(Marketwired - Jan. 6, 2014) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") announces that it has completed a shares for debt transaction after receiving the approval of the TSX Venture Exchange. As part of an option agreement (the "Option Agreement") with the 50% owners of a trust (the "Trust") that holds a 100% interest in the Brechas Vacas property (the "BV Owners"), Minsud has issued 210,000 common shares at a deemed price of C$0.10 per share in settlement of a US$20,000 option payment with the BV Owners. The common shares are subject to a four month hold period expiring on May 7, 2014. In addition, Minera Sud Argentina S.A ("MSA"), the Company's indirect 98.3% owned operating subsidiary in Argentina, made a cash payment of US$20,000 to the BV Owners in accordance with the terms of the Option Agreement. MSA is the owner of the other 50% of the Trust.
A first addendum to the Option Agreement was entered into that reschedules the staggered payments to be made by Minsud either in cash or shares thereby extending the term for exercising such option to December 29, 2019 as follows:
| (All amounts in US$) |
|
|
|
| Date |
Cash |
Shares |
Status |
| |
|
|
|
| Staggered payments |
|
|
|
| |
|
|
|
| July 4, 2012 |
50,000 |
- |
Paid |
| December 28, 2012 |
50,000 |
- |
Paid |
| June 28, 2013 |
50,000 |
20,000 |
Paid |
| December 26, 2013 |
20,000 |
20,000 |
Paid |
| June 24, 2014 |
20,000 |
- |
|
| December 19, 2014 |
20,000 |
- |
|
| June 24, 2015 |
25,000 |
- |
|
| December 19, 2015 |
25,000 |
- |
|
| June 24, 2016 |
30,000 |
- |
|
| December 19, 2016 |
30,000 |
- |
|
| June 24, 2017 |
50,000 |
30,000 |
|
| December 19, 2017 |
60,000 |
30,000 |
|
| June 24, 2018 |
80,000 |
40,000 |
|
| December 19, 2018 |
100,000 |
40,000 |
|
| June 24, 2019 |
100,000 |
40,000 |
|
| Total |
710,000 |
220,000 |
|
| |
|
|
|
| Option exercise payment |
|
|
|
| |
|
|
|
| December 19, 2019 |
535,000 |
535,000 |
|
About the Brechas Vacas Property:
Brechas Vacas is made up of three mining concessions Luis, Luis I and Luis IV totaling 2,580 hectares in the westernmost part of the consolidated Chita Valley Project, adjacent to the Chita property where the Chinchillones target is located between these two properties.
About Minsud Resources Corp.:
Minsud is a mineral exploration company focused on exploring its flagship Chita Valley Project, primarily for gold, silver and copper in the Province of San Juan, as well as advancing its La Rosita gold and silver project at the Deseado Massif - Santa Cruz Province, in the Republic of Argentina. The Company also holds a 100% owned portfolio of selected early stage prospects, approximately 60,000 hectares distributed within the Provinces of Santa Cruz, Chubut and Rio Negro, in the Republic of Argentina.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, spending commitments, future operations, results of exploration, anticipated financial results, future work programs, capital expenditures and objectives. Forward looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's TSXV Filing Statement dated April 27, 2011 under the heading "Risk Factors" as available on www.sedar.com. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.